Opposition Leader Bill Shorten will flag removing trade unions from having a direct role in Labor’s premier decision-making forum – the national conference – as he warns the party must modernise or risk its future.

In a speech to be delivered in ­Melbourne on Tuesday, Mr Shorten will say the role of unions “has developed into a factional, centralised, decision-making role’’.

Changes to dilute union influence include giving ordinary members a greater say in selecting candidates for the House of Representatives, choosing state Labor leaders and, following the recent rancour in Western Australia, picking Senate candidates. Mr Shorten, a former national secretary of the Australian Workers Union, says he is proud of his union background and notes Labor and the union movement “created one of the most successful social democratic parties in the world’’.

“But our world and our workforce are changing.

As a party, we can’t remain anchored in the past,’’ he says in a copy of the speech. “We need to rise with the ­modern tide.

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“We must rebuild as a membership -based party, not a faction-based one.’’

His push on national conference, held once every three years, is risky.

In 2002,
Simon Crean
damaged his leadership as he succeeded in reducing from 60 per cent to 50 per cent the proportion of delegates to the conference chosen by affiliated unions. At the time, the other 40 per cent was chosen by state Labor branches.

Today, the ratio between union-appointed delegates and those sent by state branches remains at 50:50.

Abolition of union appointment urged

In his speech, Mr Shorten envisages a national conference with no union-appointed delegates but with delegates directly elected by the rank-and-file and the state branches. Union members could join the party and participate just like any other individuals.

“Our goal should be for future Labor conferences to be a mix of people directly elected from and by Labor members and those elected by state conferences,’’ Mr Shorten will say.

“Making Labor more democratic and more representative is also about reaching out to union members, not just those in leadership positions, to join our party and participate in our decision making.’’

A source noted that if the change was ever made, unions would not be totally disenfranchised because they still heavily influence the state branches.

Significantly, Mr Shorten wants to increase the pools from which candidates can be chosen and the number of people able to select them.

He will note the internal displeasure at the recent West Australian Senate re-elections where controversial right-wing union boss Joe Bullock secured the No. 1 spot on the ticket and helped drive down Labor’s vote.

Consequently, Mr Shorten has ordered the ALP national executive and the WA branch to deliver “real change’’ by providing locals, alongside the “central component’’, a say in selecting Senate candidates. He then wants the model to be adopted nationally.

More say for local members

He will propose state Labor leaders are elected in the same way as he was, with the caucus vote contributing 50 per cent and the members the other 50 per cent.

And he wants local members to have a much greater say in choosing House of Representatives candidates.

If a local branch has more than 300 members, its vote should count for an extra 20 per cent towards the final result. Other changes to be flagged include removing the rule that someone must belong to a union to join Labor, making it easier and cheaper to join, and ordering a complete rewrite of Labor’s policy platform.

The reform push is consistent with Mr Shorten’s recent calls for Labor to reach out to new constituencies if it is to survive. It also aims to get the ­opposition ahead of the findings in December of the Royal Commission into Trade Union Governance and ­Corruption that the Abbott government has established .

In his speech, Mr Shorten will condemn corrupt behaviour inside unions, saying corrupt individuals should not expect protection from the labour movement.

“We don’t want you. Get out,’’ he will say.

Abbott under fire

Mr Shorten will also blast Prime Minister
Tony Abbott
’s motive for establishing the royal commission which has been told to trawl through AWU slush fund allegations from more than two decades ago, and the fraud within the Health Services Union.

Mr Shorten will say many in the labour movement “legitimately resent the political agenda behind this ­exercise’’ which, is “a Star Chamber for settling old scores".

“The timing and focus of this royal commission is the sort of cynical and small-minded practice – the low use of high office – that is beginning to define this prime minister,’’ he will say.

Shorten signalled making it easier and cheaper to join the party and dropping a requirement that members belong to a union.

But the ALP boss was preparing to go much further, with a call for changes that would please advocates of reform but put him offside with some factional warlords and union powerbrokers who supported him in last year’s leadership contest with
Anthony Albanese
.

Drafts call for local branches with more than 300 members to be given a 100 per cent say over preselection for the House of Representatives.

Smaller branches could be empowered with a 70 per cent weighting for their preselection votes, while state-based head office selection committees would have their influence reduced to 30 per cent. The NSW branch has already adopted a 100 per cent preselection vote for the rank and file, but Victoria and South Australia still have a 50-50 weighting between rank and file and head office.

Call to broaden pool

Mr Shorten also planned to call for the party to broaden the talent pool from which it preselects Senators. At present, Labor’s ranks in the upper house are dominated by former union leaders, factional bosses and, particularly in NSW, former party officials.

Queensland Labor recently adopted rule changes that give party members a direct say in the preselection of Senate candidates and some in the party are arguing for a similar rule nationwide.

Mr Shorten has called in recent weeks for the states to adopt, over time, a 50-50 leadership election model that the federal party adopted under reforms implemented by former prime minister Kevin Rudd.

A spokesman for Mr Shorten said he had set a target of 100,000 members – up from about 40,000 now – and party modernisation was needed to reach that target.

Four shadow ministers have confirmed that Mr Shorten had rung around to discuss the proposals with senior members of the Left and Right factions in the days before the speech was due to be delivered. It is understood that
Stephen Conroy
, Anthony Albanese,
David Feeney
,
Tanya Plibersek
,
Mark Butler
,
Penny Wong
,
Don Farrell
,
Kim Carr
and
Chris Bowen
were consulted.

Debate over reform to the ALP’s internal structures was turbo-charged by the West Australian Senate election, in which controversial former Shop, Distributive and Allied (SDA) workers union leader Joe Bullock claimed the only Senate seat the party won under a factional deal worked out by the left and right unions, while experienced senator
Louise Pratt
looks set to lose her seat.